Waiting for SEC regulatory approval of applications to create a Bitcoin ETF was an important driver of Bitcoin price growth at the end of 2023. However, when applications were actually approved on January 11, 2024 (here is what we wrote about it), there was a decline in cryptocurrency prices.
In particular, the price of Bitcoin decreased from a maximum of January 11 at USD 48,877 per coin, dropping below USD 40k in the twenties of January.
Fortunately for investors in the cryptocurrency market, the collapse did not occur, and today the price of Bitcoin exceeded USD 46k, thereby recovering to the levels of January 11.
This was facilitated by:
→ the Chinese New Year (celebration begins on February 10). As crypto media write, traditionally during this period there is an optimistic revival in the cryptocurrency market.
→ Interest in investing in risky assets in anticipation of the Fed lowering interest rates. Access to cryptocurrency investments has become easier with the approval of ETFs.
At the same time, technical analysis of BTC/USD shows that:
→ Bitcoin price is in an upward trend, which is described by a blue channel.
→ The decline below the lower boundary of the channel at the end of January was short-term. Probably the goal was a false breakdown of psychological support at 40 thousand. An example of such patterns could be punctures of the USD 25k level during 2023. Or punctures at the level of 30k in 2021.
How strong is the bullish sentiment? This will be more clear after the Chinese New Year celebrations are over. And also on the action of the price of Bitcoin — after all, it is now near the resistance block, which forms the level of 47k (it prevented the growth of the price of Bitcoin in January) and the median line of the channel. If optimism quickly dries up, it is possible that the price of Bitcoin may roll back to the support at 43,600, which is strengthened by the lower border of the channel.
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